"We
need to address the public safety, crime and lost tax revenue associated when
these legal and regulated businesses are operating in a cash-only system"

Washington, DC – Today, U.S. Reps. Ed Perlmutter
(CO-07) and Denny Heck (WA - 10), along with a bipartisan group of 16 other Republicans and Democrats, are proposing
sensible reforms of federal banking laws relating to marijuana
businesses. The Perlmutter/Heck bill updates federal banking rules to
resolve conflicts between federal and state laws, promoting community safety
and financial security.

Currently, under federal banking laws, many legal, regulated
legitimate marijuana businesses that follow state law are prevented from
opening bank accounts and operating as any other
businesses would. They are therefore forced to operate as cash-only
enterprises, inviting crime such as robbery and tax evasion and adding to the
burden of setting up a legitimate small business.

"We need to address the public safety, crime and
lost tax revenue associated when these legal and regulated businesses are
operating in a cash-only system,” said Congressman Ed Perlmutter (CO-07).
“We also need to provide financial institutions assurance that they can make
their own business decisions related to legal, financial transactions without
fear of regulatory penalties or criminal prosecution."

“As a small business owner, I can’t imagine trying to
operate a legitimate business without access to the banking system. Forcing
legitimate businesses to operate on a cash-only basis without bank accounts is an
invitation for robbery, tax evasion and organized crime. With twenty-one states
and D.C. now allowing for some form of legal adult marijuana usage, federal law
needs to be updated to reflect the reality of the situation in the states,”
said Congressman Denny Heck (WA-10).

Colorado and Washington recently legalized recreational
adult-use of marijuana and are in the process of crafting rules, regulations
and tax mechanisms for the product. Additionally, 19 other states and the
District of Columbia have approved medical marijuana programs.

In all of these states, federal laws are presenting criminal
and regulatory barriers to financial institutions, prohibiting them from
accepting licensed growers, retailers and dispensaries as ordinary banking
customers.

The result is legitimate, licensed and regulated businesses
have extreme difficulty accessing the banking system to accept credit cards,
deposit revenues, or write checks to meet payroll or pay taxes.

The Marijuana Business Access to Banking Act would allow
banks, credit unions and other depository institutions the legal clearance to
provide banking services to a marijuana-related legitimate business, ensuring
these businesses do not have to operate on a cash-only basis.